UPDATE 1-BASIS POINT-San Miguel seeks nearly $2 bln loans

Mon Jan 28, 2013 4:51am EST

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HONG KONG, Jan 28 (Basis Point) - San Miguel Corp is seeking almost $2 billion in loans, sources said.

According to the sources, the conglomerate is sounding relationship banks on a five-year loan of at least $1 billion in size. Funds could refinance a $1 billion five-year bullet loan from August 2010 which paid a top-level all-in of 265bp via a margin of 240bp over Libor.

The company could also seek a $300 million working capital facility additional to the $1 billion-plus loan, sources said.

Meanwhile, the company is considering a takeout of the $650 million one-year bridge loan recently mandated to Deutsche Bank and Standard Chartered Bank. The $650 million bridge has an opening margin of 165bp over Libor, stepping up to 200bp after six months, sources said.

The fully underwritten bridge funds the tender offer for $600 million in exchangeable notes due in 2014.

San Miguel announced the tender offer for redemption of the 2014 notes on Jan. 24. The notes, issued in 2011, are listed on the Singapore stock exchange.

The tender offer will close on Tuesday.

San Miguel has businesses spanning beverages, food and packaging. Its operations outside of the Philippines extend to China, Vietnam, Indonesia, Malaysia, Thailand and Australia.

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